Savers over the age of 65 will continue to be able to save up to £20,000 in a cash Isa each year.

The annual adult cash Isa subscription limit will be slashed to £12,000 from April 2027, in what one building society described as a “sucker punch” to savers.

In the Budget, the Government unveiled plans to reform the Isa system so that only over-65s will retain the full £20,000 annual cash Isa allowance.

The annual overall contribution limit into adult Isas will remain at £20,000, potentially encouraging some savers who reach the £12,000 cash Isa limit to put more money in stocks and shares.

A consultation will also be published in early 2026 on the implementation of a “new, simpler” Isa product to support first-time buyers to buy a home. Once available, this new product will be offered i

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